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TMI Blog2018 (1) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued - in terms of Section 73(3) of the FA, 1994, if the service tax has already been paid with interest before issue of show-cause notice, there will be no need to issue show-cause notice and hence there will be no liability for penalty - demand of tax with interest upheld - appeal allowed in part. - ST/135/2006-DB - 22947/2017 - Dated:- 4-12-2017 - Shri S.S Garg, Judicial Member And Shri V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve. Subsequently after a demand was made by the Department, the interest due on such service tax was also paid by the appellant. However the Department went on to issue show-cause notice and the original authority vide his order dt. 31/03/2005 not only confirmed the service tax already paid with interest but also imposed penalty of an amount of equal to the service tax paid after delay. When the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified that such amounts paid by the CHAs for other services procured on behalf of their customers will not form part of the value of the services for computing service tax. The circular further clarified that the agent s commission or charges recovered by the CHA from the clients alone will be chargeable to service tax. It was further specified in the circular that in case the split up of suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1994, if the service tax has already been paid with interest before issue of show-cause notice, there will be no need to issue show-cause notice and hence there will be no liability for penalty. In this view, we find no justification to impose penalty in this case which is set aside. However we make it clear that the confirmation of service tax and interest paid is upheld. With the above obser ..... X X X X Extracts X X X X X X X X Extracts X X X X
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